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Phillips County, Colorado

Financial Statements

December 31, 2014

Phillips County, ColoradoAnnual Financial Report

December 31, 2014

Table of Contents

Financial Section

Page

Report ofIndependent Certified Public Accountant 1Management's Discussion and Analysis (RSI) n'

Basic Financial Statements:

Government-Wide Financial Statements:Statement of Net Position 3Statement of Activities 4

Governmental Fund Financial Statements:

Balance Sheet 5Reconciliation of Total Governmental Fund Balances to the

Statement of Net Position 6Statement of Revenues, Expenditures, and Changes in Fund Balances 7Reconciliation of the Statement of Revenues, Expenditures and

Changes in Fund Balances of Governmental Funds to theStatement of Activities 8

Fiduciary Fund Financial Statements:Statement of Net Assets 9

Notes to the Financial Statements 10

Required Supplementary Information Other Than MD&A:Schedules of Revenues, Expenditures andChanges in Fund Balance-Actual and Budget

Major Funds:General Fund 25Road & Bridge 26Human Services 27Capital Expenditures 28

Supplementary Information:Combining Statements of Non-major Governmental Funds:

Combining Balance Sheet 29Combining Statements of Revenues, Expenditures and Changes in Fund Balances 30

Phillips County, ColoradoAnnual Financial Report

December 31,2014

Table of Contents

(Continued)

Page

Schedules of Revenues, Expenditures and Changes in Fund Balance- Actual and BudgetNon-Major Governmental Funds:

Special Revenue Funds:Ambulance Replacement 31Conservation Trust 32Contingent 33E-911 34Fair 35Jr. Livestock Sale 36Economic Development 37

Local Highway Finance Report 38

Schedule of Due From/To the State of Colorado-Human Services Fund 40

Single Audit

Schedule ofFindings and Questioned Costs 41Schedule ofExpenditures ofFederal Awards 42Report on Internal Control over Financial Reporting and on Compliance

and Other Matters Based on an Audit of Financial Statements Performed inAccordance with Government Auditing Standards 43

Report on Compliance with Requirements that Could Have a Direct and MaterialEffect on Each Major Program and Internal Control Over Compliance inAccordance with CircularA-133 45

/farmer, liea certifiedpublic accountingand consultingfirm

IndependentAuditor's Report

The Governing BodyPhillips County, Colorado

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, each major fund,and the aggregate remaining fund information of Phillips County, Colorado, as of and for the year endedDecember 31, 2014, and the related notes to the financial statements, which collectively comprise PhillipsCounty, Colorado's basic financial statements as listed in the table of contents.

Management's Responsibilityfor the Financial Statements

Phillips County, Colorado's management is responsible for the preparation and fair presentationof thesefinancial statements in accordance with accounting principles generally accepted in the United States ofAmerica; this includes the design, implementation and maintenance of internal control relevant to thepreparation and fair presentation of financial statements that are free from material misstatement, whetherdue to fraud or error.

Auditor's Responsibility

Our responsibility is to express opinions on these financial statements basedon our audit. We conductedour audit in accordance with auditing standards generally accepted in the United States of America andthe standards applicable to financial auditscontained in Government Auditing Standards, issued by theComptroller General of the United States. Those standards require thatwe plan and perform the audit toobtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain auditevidence about the amounts and disclosures inthe financial statements. The procedures selected depend on the auditor's judgment, including theassessment of the risks of material misstatement of the financial statements, whether due to fraud or error.In making those risk assessments, the auditor considers internal control relevant to the entity's preparationand fair presentation of the financial statements in orderto design audit procedures that are appropriate inthe circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity'sinternal control. Accordingly, we express no such opinion. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of significant accounting estimatesmade by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinions.

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, therespective financial position of the governmental activities, each majorfund and the aggregate remainingfund information of PhillipsCounty,Colorado, as of December31, 2014, and the respective changes infinancial position and, where applicable, cash flows thereoffor the year then ended in accordance withaccounting principles generally accepted in the United States of America.

p o box 1173 203 east oak st. lamar, Colorado 81052 (719) 336-7428 (719) 336-2982

Other Matters

RequiredSupplementary Information

Accounting principles generally accepted in the United Statesof America require that the management'sdiscussion and analysis and budgetary comparison information on pages iii-v and 25-28 be presented tosupplement the basic financial statements. Such information, although nota partof the basic financialstatements, is required by the Governmental Accounting StandardsBoard who considers it to be anessential part of financial reporting for placing the basic financial statements in an appropriateoperational, economic or historical context. We have applied certain limited procedures to therequiredsupplementary information in accordance with auditing standards generally accepted in the United Statesof America, which consisted of inquiries of management about the methods of preparing the informationand comparing the information for consistency with management's responses to our inquiries, the basicfinancial statements and other knowledge we obtained during our audit of the basic financial statements.We do notexpress an opinion or provide any assurance on the information because the limited proceduresdo not provideus with sufficient evidenceto express an opinion or provide any assurance.

Other Information

Our audit was conductedfor the purposeof forming opinionson the financial statements that collectivelycomprise Phillips County, Colorado's basicfinancial statements. The accompanying supplementaryinformationas listed in the table of contents and schedule of expenditures of federal awards, as requiredby Office of Management and Budget Circular A-133, Audits of States, Local Governments and Nonprofit Organizations are presented for purposes of additional analysis and are not a required partof thebasic financial statements.

Theaccompanying supplementary information as listed in the table of contents is the responsibility ofmanagement andwas derived from and relates directly to the underlying accounting andother recordsused to prepare the basic financial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basicfinancial statements and certain additional procedures,including comparing and reconciling such information directly to the underlying accounting and otherrecords used to prepare the basic financial statements or to the basicfinancial statements themselves, andother additional procedures in accordance with auditing standardsgenerally accepted in the United Statesof America. In our opinion, the accompanying supplementary information is fairly stated, in all materialrespects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated July 24, 2015on our consideration of PhillipsCounty, Colorado's internal control over financial reporting and on ourtests of its compliance with certain provisions of laws, regulations, contractsand grant agreements andother matters. The purpose of that report is to describe the scope of our testing of internal control overfinancial reporting and compliance and the results of that testing, and not to provide an opinion oninternal control over financial reporting or on compliance.That report is an integral part of an auditperformed in accordance with Government Auditing Standards in consideringPhillipsCounty,Colorado's internal control over financial reporting and compliance.

July 24, 2015

Phillips County, ColoradoManagement's Discussion and Analysis

December 31, 2014

As management of Phillips County, Colorado (the "County), we offer readers of the county'sfinancial statements a brief overview and analysis of some key financial factors of the Countyfor the fiscal year ended December 31, 2014.

County Profile

Phillips County is a small, agriculturally based county in the northeast corner of Colorado. Itwas established in 1889 and encompasses 680 square miles. The 2010 Census showed acountywide population of 4,442 people. The county has three incorporated municipalities -Paoli - 34; Haxtun - 946; and Holyoke, the County Seat - 2,313. The County also has a smallunincorporated community of Amherst. The total unincorporated population is 1,149.

Key Financial Factors

Healthy annual end-of-year fund balances and stable or increased assessed values are keycomponents of the county's financial health.

Fund Balance Review:

Fund Balances

2010 2011 2012 2013 2014

General $1,168,334 $1,184,798 $1,079,099 $1,116,332 $1,059,119

Road& Bridge $555,804 $545,760 $462,346 $513,701 $526,840

Human Services $71,619 $50,859 $40,032, $53,420 $82,792

Capital Expenditures $74,566 $208,659 $99823 $8,986 $221,882

Other $360,549 $397,401 $405,413 $435,313 $382354

$2,230,872 $2,387,477 $2,086,713 $2,127,752 $2,272,987

The fund balance comparison shows an increase overall. The current funds of most concern areHuman Services and Road and Bridge. Each is on the upswing but each still needs to be closelymonitored. The low fund balance in Road and Bridge greatly affects the ability to purchase newequipment. The Capital Expenditure Fund has rebounded primarily because of grant paymentscovering previous expenditures.

in

Assessed Value of the County

2010 2011 2012 2013 2014

$52,397,200 $56,488,770 $73,632,698 $73,632,698 $77,496,957

In five years the county's assessed value has increased $25,099,757, a 47.9 % increase. Thesubstantial increase reflects positive overall growth in the county. The county's economy isprimarily dependent on agriculture. Agriculture values have increased substantially because ofhigh commodity prices in past years. Management must recognize that when those highcommodity prices fall out of the assessment formula, the county will experience declines inassessed value.

Most assessment classifications remained fairly stable. The major increases have been inagricultural land and increases in natural gas production.

Next Year's Budget and Rates: The County's General Fund balance at the end of fiscal year2014 was $1,116,332. A reserve is necessary to start the year and provide basic services to theresidents and visitors of Phillips County. An adequate reserve at the year-end on which tooperate a minimum of three months or 25% is considered necessary, for the majority of theproperty tax revenue is received in April of each year. The County had a General Fund balanceof 34.3% of the 2014 budgeted expenditures.

IV

Capital Assets and Debt Administration:

The County's major purchases for capital assets in 2014 were:

2014 CIH 4x4 Scout (With Trade) Maintenance }p 2,250

1991 Ford 4x4 Maintenance 2,500

2014 Ford Explorer Sheriff 21,905

Ecoflex Scrubber Event Center 9,753

Ticket Booth Fairgrounds 4,486

Parking Lot Lighting Fairgrounds 27,758

Kid's Climbing Boulder Fairgrounds 18,535

2015 John Deere 7726 Motor Grader (with

trade)

Road & Bridge20,000

2014 Diamond Flatbed Trailer Road & Bridge 5,125

Aggregate Blending Trailer Road & Bridge 83,904

2001IHC 4700 Truck Road & Bridge 20,895

Walk n' Roll Packer Road & Bridge 20,240

Walk n' Roll Packer Road & Bridge 20,240

1974 Fruehauf Water Trailer Road & Bridge 10,500

2014 GMS Vi Ton Pickup Road & Bridge 32,626

Load King Bottom Dump Trailer Road & Bridge 43,743

911 Hardware Road & Bridge 44,860

Total $389,320

The County has two (2) lease-purchase agreements in 2014 as referenced in Note 13 of theAudit Information.

Request for information: This brieffinancial overview is designed to highlight key componentsof the County's finances for all those with an interest. Questions concerning any of theinformation provided in this overview or requests for additional financial information should beaddressed to the Phillips County Administration Office, 221 S. Interocean Ave., Holyoke, CO80734.

ASSETS

Cash and cash equivalentsReceivables

Due from other governmental agenciesInventories

Capital assetsLand

Infrastructure

BuildingsEquipment and furnitureVehicles

Less: accumulated depreciationTotal Capital Assets

Total Assets

LIABILITIES

Accounts payable and accrued expensesDue to other governmental agenciesLong-term liabilities

Due within one yearCapital leases 126,286 126,286

Due in more than one yearCapital leasesCompensated absences

Total Liabilities

DEFERRED CASH INFLOW OF RESOURCES

Deferred revenues-property taxes

NET POSITION

Net investment in capital assets 7,858,742 7,858,742Restricted for:

TABOR and enabling legislation 163,777 163,777Unrestricted 1,919,345 1,919,345

Total Net Position $ 9,941,864 $ 9,941,864

Phillips County, ColoradoStatement of Net Position

December 31, 2014

Governmental

Activities Total

$ 2,174,591 5! 2,174,591

2,318,798 2,318,798

42,703 42,703

137,233 137,233

137,203 137,203

2,063,724 2,063,724

6,708,813 6,708,813

5,391,416 5,391,416

1,298,552 1,298,552

(7,553,272) (7,553,272)

8,046,436 8,046,436

12,719,761 12,719,761

193,409 193,409

15,317 15,317

61,408 61,408

189,863 189,863

586,283 586,283

2,191,614 2,191,614

The accompanying notes to the financial statementsare an integral part of these statements.

3

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Phillips County, ColoradoReconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position

December 31, 2014

Total fund balance, governmental funds $ 2,272,987

Amounts reported for governmental activities in theStatement of Net Positionare different because:

Capital assets used in governmental activities are notcurrent financialresources and therefore are not reported in this fund financial statement, butare reported in thegovernmental activities of the Statement of Net Position. 8,046,434

Some liabilities, (such as Notes Payable, Capital Lease Contract Payable, Long-term Compensated Absences, and Bonds Payable ), are notdueand payable inthe current period and are not included in the fund financial statement, butareincluded in the governmental activities of the Statement of Net Position. (377,558)

Rounding !_

Net Assets of Governmental Activities in the Statement of Net Position $ 9,941,864

The accompanying notes to the financial statementsare an integral part of these statements.

6

REVENUES

Property TaxesSO Tax

Sales, Use and miscellaneous taxes

Fees and fines

Licenses and permitsIntergovernmentalCharges for servicesInvestment earningsMiscellaneous

Rent received

Total revenues

EXPENDITURES

Current:

General government

Public safetyStreets & Highways

Health and Welfare

Culture and recreation

Judicial

Sanitation

Economic development

Debt Service:

PrincipalInterest and other charges

Capital outlayTotal Expenditures

Excess (deficiency) of revenues overexpenditures

OTHER FINANCING SOURCES

(USES)Other sources

Transfers in

Transfers out

Total other financing sources and uses

SPECIAL ITEM

Proceeds from sale of assets

Net change in fund balancesFund balances - beginningFund balances - endinj

Phillips County, ColoradoStatement of Revenues, Expenditures and Changes in Fund Balances

Governmental Funds

For the Year Ended December 31,2014

Other Total

Human Capital Governmental Governmental

General Road & Bridge

$ 262,157

Services

$ 117,205

Expenditures

$ 73,250 $

Funds Funds

$ 1,572,176 $ 2,024,788

202,452 39,924 15,101 9,438 -

266,915

258,318 339,927 - - -

598,245

2.065 - - - -

2,065

1.295 1,927 - - -3,222

93.084 1.162.188 460,799 472,722 11,413 2,200,206

298.641 9.985 - 151,815 235,930 696,371

5.662 - - -913 6,566

76,075 6,544 - 35,962 122,252 240,833

59,142 . - - -59,142

2,568,910 1,822,652 593,105 743,187 370,508 6,098,353

1.217.585 10.957

596,736 -

-1.413,147

61.530 -

316.965 -

85,155 -

243.750 •

122,946

- 8,191

50,903 399,430

2,572,624 1,954,671

(3,714) (132,019)

(53,500)

(53,500)

(57.214)

1.116.333

1.059,119

142,158

142,158

3,000

13.139

513,701

526,840

583,734

583,734

9,371

20.000

20,000

29,371

53,421

82,792

482,389 262 1,711,193

1,611 128,216 726,563

- -1,413,147

- - 645,264

- 220,215 537,180

- - 85,155

- -243,750

-

63,414 63,414

_ _ 122,946

- -8,191

46,291 44,860 541,484

530,291 456,967 6,098,287

212,896 (86,459) 66

212,896

8,986

221,882

33,500

33,500

(52,959)

435,313

382,354

142,158

53,500

(53,500)

142,158

3,000

145,224

2,127,763

2,272,987

The accompanyingnotes to the financial statementsare an integral part of these statements.

7


Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances ofGovernmental Funds to the Statement of Activities

For the Year Ended December 31,2014

Net change in fund balances - total governmental funds: $ 145,224

Amounts reported for Governmental Activities inthe Statement of Activities aredifferent because:

Governmental funds report outlays forcapital assets as expenditures because suchoutlays use current financial resources. In contrast, theStatement of Activities reportsonly a portion of theoutlay as expense. The outlay isallocated over theassets'estimated useful lives as depreciation expense for the period.This is theamount by which capital outlay of $541,484 was more than depreciation of$529,627 in the current period. 11,857

Governmental funds report the entire net sales price(proceeds) from saleof an assetas revenue because it provides current financial resources. In contrast, theStatementof Activities reports only thegain on the sale of theassets. Thus, thechange in netassets differs from the change in fund balance by the cost of the asset sold. (277,348)

Governmental funds report capital lease payments as current financial resources. Incontrast, the Statement of Activities treats such debtas a liability. Governmental fundsreport repayment of capital lease principal asanexpenditure, In contrast, theStatementof Activities treats such repayments as a reduction in long-term liabilities.This is the amount by which repayments exceeded proceeds. 122,946

Some expenses reported in the statement ofactivities do not require the use of currentfinancial resources and these are not reported as expenditures in governmental funds:

Change in Compensated Absences (73,971)

Rounding !_!_

Change innetposition of governmental activities $ (71,281)

The notes to the financial statements

are an integral part of these statements.8

Phillips County, ColoradoStatement of Fiduciary Net Assets

Fiduciary Funds

December 31, 2014

TOTAL AGENCY

ASSETS: FUNDS

Cash and cash equivalentsTotal assets

LIABILITIES:

Due to other governmental unitsTotal Liabilities

$ 1,615,649

1,615,649

1,615,649

$ 1,615,649

The accompanying notes to financial statementsare an integral part of these statements.

9

Phillips County, ColoradoNotes to Financial Statements

December 31, 2014

Note 1 Reporting Entity

Phillips County (the County) is a political subdivision of the State ofColorado, governed by an elected three-member Board of CountyCommissioners. There are also six other elected officials of the County(Assessor, Clerk and Recorder, Sheriff, Treasurer, Coroner, andSurveyor).

All financial transactions of the offices of elected officials of the Countyare included in the General Fund of the County's financial statements.The Board of County Commissioners has budgetary authority over theelected officials and is accountable for all fiscal matters. County propertytaxes fund a significant portion of the costs of operating the electedofficials' offices. Services provided by the elected officials are for thebenefit of Phillips County residents and are conducted within theboundaries of the County.

The basic financial statements present the financial statements of theCounty (the primary government) and its component units in accordancewith Statements of the Governmental Accounting Standards Board, "TheFinancial Reporting Entity," as amended.

The County has examined otherentities and there are no otherentities thatshould be included.

The County is within the 13th Judicial District and participates with othercounties in receiving services from the District Attorney. The DistrictAttorney - 13th Judicial District is not a component unit of PhillipsCounty.

Note 2 Summary of Significant Accounting Policies

The accounting and reporting policies of the County conform toaccounting principles generally accepted in the United States of America(USGAAP) as applicable to government units. The GovernmentalAccounting Standards Board (GASB) is the accepted standard-settingbody for establishing governmental accounting and financial reportingprinciples. The following summary of significant accounting policies ispresented to assist the reader in evaluating the County's financialstatements.

10

Measurement Focus, Basis of Accounting and Financial StatementPresentation

Government-Wide and Fund Financial Statements The Countygovernment-wide financial statements include a Statement of Net Positionand a Statement of Activities. These statements present summaries ofGovernmental and Business-Type Activities for the County accompaniedby the total column. Fiduciary activities of the County are not included inthese statements. Government activities, which normally are supported bytaxes and intergovernmental revenues, are reported separately frombusiness-type activities, which rely to a significant extent on fees andcharges for support. Likewise, the primary government is reportedseparately from certain legally separate component units for which theprimary government is financially accountable.

The Statement of Activities demonstrates the degree to which the directexpenses of a given function or segment are offset by program revenues.Direct expenses are those that are clearly identifiable with a specificfunction or segment. Program revenues include (1) charges to customersor applicants who purchase, use or directly benefit from goods, services orprivileges provided by a given function or segments and (2) grants andcontributions that are restricted to meeting the operational or capitalrequirements of a particular function or segment. Taxes and other itemsnot properly included among program revenues are reported instead ofgeneral revenues.

Separate financial statements are provided for governmental funds andfiduciary funds, even though the fiduciary funds are excluded from thegovernment-wide financial statements. Major individual funds arereported as separate columns in the fund financial statements.

The government-wide financial statements are presented on an economicresources measurement focus and the accrual basis of accounting.Accordingly, all of the County's assets and liabilities, including capitalassets, as well as infrastructure assets when capitalized, and long-termliabilities, are included in the accompanying Statement of Net Assets. TheStatement of Activities presents changes in net assets. Under the accrualbasis of accounting, revenues are recognized in the period in which theyare earned while expenses are recognized in the period in which theliability is incurred.

Fund financial statements are reported using the current financialresources measurement focus and the modified accrual basis ofaccounting. Revenues are recognized as soon as they are both measurableand available. Revenues are considered to be available when they arecollectible within the current period or soon enough thereafter to payliabilities of the current period. For this purpose, the County considersrevenues to be available if they are collected within sixty days of the end

11

of the current fiscal period. Expenditures generally are recorded when aliability is incurred, as under accrual accounting. However, debt serviceexpenditures, as well as expenditures related to compensated absences andclaims and judgments, are recorded only when payment is due.

The primary revenue sources, which have been treated as susceptible toaccrual by the County, are property tax, sales tax, intergovernmentalrevenues, and other taxes. Only the portion of special assessmentsreceivable due within the current fiscal period is considered to besusceptible to accrual as revenue of the current period. All other revenueitems are considered to be measurable and available only when cash isreceived by the County.

The County reports the following majorgovernmental funds:

General Fund This is the County's primary operating fund. It accountsfor all activities of the general government except those required to beaccounted for in another fund.

Road & Bridge Fund This fund accounts for maintenance of all Countyroads and bridges.

Department of Human Services (Public Welfare) This fund accounts forpublic welfare costs paid to qualifying clients. The majority of federalfunds expended are expensed through this fund.

Capital Expenditure Fund This fund accounts for the majority of capitalexpenditures not budgeted by the General and Road & Bridge funds.

The County has one Fiduciary Fund, which consists of the cash withcounty treasurer. The fund is not included with any other fund.

Certain eliminations have been made as prescribed by GASB StatementNo. 34 in regards to interfund activities, payables, and receivables. Allinternal balances in the Statement of Net Assets have been eliminatedexcept those representing balances between the governmental activitiesand the business-type activities, which are presented as internal balancesand eliminated in the total primary government column. In the Statementof Activities, internal service fund transactions have been eliminated.However, those transactions between governmental and business-typeactivities have not been eliminated.

Reconciliation of the Fund financial statements to the Government-Widefinancial statements is provided in the financial statements to explain thedifferences created by the integrated approach of GASB Statement No. 34.

12

The County follows the policy of capitalizing all assets, other thaninfrastructure, that cost more than $2,000 with an estimated useful life ofmore than one year. Infrastructure assets that cost more than the followingamounts will be capitalized:

Gravel roads $ 500,000Bridges $ 75,000Other Infrastructure $ 250,000

The useful lives of the assets are:

Buildings & Improvements 50-75 yearsFurniture & Fixtures 7-10 yearsMachinery, Equipment, & Vehicles 5-10 yearsInfrastructure 75 years

Program revenues derive directly from the program itself or from partiesoutside the reporting government's taxpayers or citizenry, as a whole; theyreduce the net cost of the function to be financed from the government'sgeneral revenues. The statement of activities reports separately threecategories of program revenues: (a) charges for services, (b) program-specific operating grants and contributions and (c) program-specificcapital grants and contributions.

Charges for services include revenues based on exchange or exchangelike transactions. These revenues arise from charges to customers orapplicants who purchase, use or directly benefit from the goods, services,or privileges provided. Revenues in this category include fees charged forspecific services, such as water use or garbage collection; licenses andpermits, such as dog licenses, liquor licenses, and building permits;operating special assessments, such as for street cleaning or special streetlighting; and any other amounts charged to servicerecipients.

Program-specific grants and contributions (operating and capital) includerevenues arising from mandatory and voluntary nonexchange transactionswith other governments, organizations, or individuals that are restrictedfor use in a particular program. Some grants and contributions consist ofcapital assets or resources that are restricted for capital purposes - topurchase, construct or renovate capital assets associated with a specificprogram. These are reported separately from grants and contributions thatmay be used either for operating expenses or for capital expenditures ofthe program at the discretion of the reporting government. Thesecategories of program revenue are specifically attributable to a programand reduce the net expense of that program to the reporting government.Multipurpose grants (those that provide financing for more than oneprogram) are reported as program revenue if the amounts restricted to eachprogram are specifically identified in either the grantaward or the grant

13

application. Multipurpose grants that do not provide for specificidentification of the programs and amounts are reported as generalrevenues.

Net Position

Net Position represents the difference between assets and liabilities. Netinvestment in capital assets consists of capital assets, net of accumulateddepreciation, reduced by the outstanding balances of any borrowing usedfor the acquisition or construction of improvements of those assets. Netpositions are reported as restricted when there are limitations imposed ontheir use either through the enabling legislation adopted by the County orthrough external restrictions imposed by creditors, grantors, laws orregulations of other governments.

Estimates

The preparation of financial statements in conformity with accountingprinciples generally accepted in the United States of America requiresmanagement to make estimates and assumptions that affect the amountsreported in the financial statements and accompanying notes. Actualresults may differ from those estimates.

Interfund Transactions

Transactions between funds that would be treated as revenues,expenditures, or expenses if they involved organizations external to theCounty are accounted for as revenues, expenditures, or expenses in thefunds involved. Transactions, which constitute reimbursements of a fundfor expenditures or expenses initially made from that fund, which areproperly applicable to another fund, are recorded as expenditures orexpended in the reimbursing fund and as reductions of the expenditure orexpense in the fund that is reimbursed. At year-end, outstanding balancesbetween funds are reported as "due to/from other funds." Any residualbalances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as"internal balances."

Budgets and Budgetary Accounting

Annual budgets are adopted as required by Colorado Statutes. Formalbudgetary integration is employed as a management control device duringthe year.

14

The budget calendar is as follows:

August 25

October 15

Assessors must submit abstract of assessments, reflecting allassessed values of property in the County by class and subclass tothe Division of Property Taxation.

Assessors must certify to all taxing entities and the Division ofLocal Government of the new total assessed valuation and theamounts for the various factors needed to compute the statutoryproperty tax revenue limits.

Statutory deadline for submission of proposed budget to the localgoverning body. "Notice of Budget" to be published when budgetis received.

December 15 Statutory deadline for certification of mill levies to the Board ofCounty Commissioners. Local government levying a property taxmust adopt their budget before certifying the levy to the County.Local Governing Body shall enact an ordinance or resolutionmakingappropriations for the ensuring fiscal period.

December 22 Statutory deadline for Board of County Commissioners to certifylevies and revenues to Assessor and the Division of PropertyTaxation.

Budgets are adopted on a basis consistent with generally acceptedaccounting principles (GAAP). Budgetary comparisons in this report arepresented on the GAAP basis.

Appropriations are adopted by resolution for each fund in total. Overexpenditures are not deemed to exist unless the fund as a total hasexpenditures in excess of appropriations. All appropriations lapse at year-end.

Supplemental budgets were adopted due to unanticipated revenues andexpenditures.

The E911 Fund, Economic Development Fund, Jr. Livestock Fund, andFair Fund overspent their budgets, which may be a violation of ColoradoRevised Statutes.

Property Taxes

Annual property taxes are levied and assessed on January 1, and arecertified by the County by November 1 of the current year. On January 1of the following year, the County Treasurer bills the property owners, thusestablishing an enforceable lien on the property. The County Treasureralso collects the property taxes and remits collections on a monthly basis

15

to the County. County property tax revenues are recognized as theybecome current receivables from the County Treasurer. One-half of theproperty taxes are due by February 28 and one-half due by June 15 or allmay be paid by April 30 to avoid penalties and interest.

Vacation Days and Sick Leave

All full-time County employees are entitled to ten working days of paidvacation per year after one full year of employment. After the tenth yearof employment, an additional five days of vacation are allowed percalendar year. Vacation time accrues for one year, and any amounts notused by December 31 of the following year are lost, except amountsapproved by the Commissioners to carry to the subsequent year.

Every employee may accrue sick leave at a rate of one day per month ofservice. Such leave is allowed only to the extent of actual illness or deathof an immediate family member. Employees hired after November 1,2005, with 10 years or more of service may be compensated for a portionof unused sick leave upon leaving the County.

Employees hired prior to November 1, 2005, upon retirement after the ageof 62 or upon becoming disabled, shall be compensated based on regularpay for a maximum of ninety days of accrued sick leave.

The accrual amount as of year-end is $189,863.

Contraband

Per Colorado Contraband Forfeiture Act (CRS 16-13-501 to 511),proceeds received from the seizure of contraband must be used for thespecific purpose of law enforcement activities. These proceeds areexempt from the appropriation process. Phillips County received nomaterial proceeds from contraband during the year.

Inventories

Inventory of construction and maintenance supplies and weed controlchemicals are reflected in the Road and Bridge Fund and General Fund,respectively, as an asset. Inventory is recorded at cost using the first-in,first-out (FIFO) method.

Note 3 Deposits and Investments

Deposits

Colorado State Statutes, specifically the Public Deposit Protection Act of1989, require all public monies to be deposited in financial institutions thathave been designated as eligible public depositories. Eligible public

16

depositories must pledge eligible collateral, as promulgated by the Statebanking board, having a market value in excess of 102% of the aggregateuninsured public deposits. Eligible collateral must be held in the custodyof any federal reserve bank or any branch thereof or of any depositorytrust company which is a member of the Federal Reserve System, andwhich is supervised by the State banking board. The Statutes furtherrestrict such deposits to eligible public depositories having their principaloffices within the State of Colorado.

Custodial Credit Risk

Deposits are exposed to custodial credit risk if they are not covered bydepository insurance and the deposits are:

a. Uncollateralized,b. Collateralized with securities held by the pledging financial

institution, orc. Collateralized with securities held by the pledging financial

institution's trust department or agent but not in thedepositor-government's name.

As of year-end, the County was not exposed to custodial risk in that allfunds held by the county are deposited in various financial institutions thatare covered by FDIC insurance or meet the requirements of the PublicDeposit Protection Act as amended per Colorado Revised Statutes. Thecounty is not exposed to any other risk as defined by GASB 40.

Note 4 Changes in Fixed Assets

Capital asset activity for the year endedDecember 31, 2014 is shown below:

BeginningBalance Additions Deletions

EndingBalances

Governmental Activities:

Land $ 137,203 $ $ $ 137,203

Total Capital Assets, Not Being Depreciated 137,203 - - 137,203

Capital Assets Being Depreciated:Infrastructure

BuildingsEquipmentVehicles

2,063,724

6,708,813

5,430,978

1,304,885514,017

27,470

(553,579)(33,803)

2,063,7246,708,8135,391,4161,298,552

Total Capital Assets Being Depreciated 15,508,400 541,487 (587,382) 15,462,505

Less Accumulated Depreciation (7,333,679) (529,627) 310,034 (7,553,272)

Total Capital Assets Being Depreciated, Net 8,174,721 11,860 (277,348) 7,909,233

Governmental Activities Capital Assets, Net $ 8,311,924 $ 11,860 $ (277,348) $ 8,046,436

17

Depreciation expense was chargedto functions/programs of the primarygovernment as follows:

Governmental activities:

General government $ 51,706Public safety 62,443

Public Works 248,420

Sanitation 48,519

Health & Welfare 8,882

Culture & Recreation 109.657

Total depreciation expense-governmental activities $ 529.627

Note 5 Joint Ventures

The County participates in the County Technical Services, Inc. (CTSI)Insurance Pool. This joint venture does not meet the criteria for inclusionwithin the reporting entity because the County Health Pool has thefollowing characteristics:

• is financially independent and responsible for its own financialdeficits and entitled to its own surpluses,

• is a separate governing board from that of the County, which iscomprised of 1 voting member from each participatingCounty/entity.

• the governing board and management have the ability tosignificantly influence operations by approving budgetary requestsand adjustments, signing contracts, hiring personnel, exercisingcontrol over facilities and determining the outcome or dispositionof matters affecting the recipients of services provided, and

• has absolute authority over all funds and fiscal responsibilityincluding budgetary responsibility and reporting to state agenciesand controls fiscal management.

Financial information is available from CTSI.

Note 6 Pension Plan

Defined Contribution Plan

The County is participating in a Defined Contribution Pension Planthrough Colorado Counties Officials and Employees RetirementAssociation (CCOERA). The Plan is funded by employee's contributionsat 4 percent of gross salary with the County matching another 4 percent.After one year of service, participation by County employees ismandatory.

18

Note 7 Leases

The County has various operating leases and maintenance contracts forcopiers, faxes, and computer equipment that are entered into during thenormal course of business. These costs are charged to expense as incurredbased on terms and renewals.

Note 8 Transfers

The transfers made during 2014 were from the General Fund to theEconomic Development Fund, Ambulance Replacement Fund, andDepartment of Human Services in the amounts of $25,500, $8,000, and$20,000, respectively.

Transactions between funds that would be treated as revenues,expenditures, or expenses if they involved organizations external to theCounty are accounted for as revenues, expenditures, or expenses in thefunds involved. Transactions, which constitute reimbursement of a fundfor expenditures or expenses initially made from that fund, which areproperly applicable to another fund, are recorded as expenditures orexpenses in the reimbursing fund and as reductions of the expenditure orexpense in the fund that is reimbursed.

Non-recurring or non-routine transfers of equity between funds arereferred to as residual equity transfers and are reported as additions to ordeductions from the fund balance of Governmental Funds. Transfers of

equity to Proprietary Funds are treated as contributed capital and suchtransfers from proprietary funds are reported as reductions of retainedearnings or contributed capital as is appropriate in the circumstances. AHother legally authorized transfers are treated as operating transfers and areincluded in the results of operations of both Governmental and ProprietaryFunds.

Note 9 Risk Management

County Workers' Compensation Pool

The County is exposed to various risks of loss related to injuries ofemployees while on the job. The County joined together with otherCounties in the State of Colorado to form the County Workers'Compensations Pool (CWCP), a public entity risk pool currently operatingas a common risk management and insurance program for membercounties. The County pays an annual contribution to CWCP for itsworkers' compensation insurance coverage. The intergovernmentalagreement of formation of CWCP provides that the pool will befinancially self-sustaining through member contributions and additional

19

assessments, if necessary, and the Pool will purchase excess insurancethrough commercial companies for members' claims in excess of aspecified self-insured retention, which is determined each policy year.

Colorado Counties Casualty and Property Pool

The County is exposed to various risks of loss related to property andcasualty losses. The County joined together with other Counties in theState of Colorado to form the Colorado Counties Casualty and PropertyPool (CAPP), a public entity risk pool currently operating as a commonrisk management and insurance program for member counties. TheCounty pays an annual contribution to CAPP for its property and casualtyinsurance coverage. The intergovernmental agreement of formation ofCAPP provides that the pool will be financially self-sustaining throughmember contributions and additional assessments, if necessary, the Poolwill purchase excess insurance through commercial companies formembers' claims in excess of a specified self-insured retention, which isdetermined each policy year.

The County, in their opinion, has obtained adequate coverage as requiredby Colorado Revised Statutes to settle claims in the ordinary course ofbusiness. However, due to the unknown nature of potential liability, someclaims may arise that fall outside the coverage limits for which the Countywould be financially responsible. Claims have not exceeded coveragesduring the past three years.

Note 10 Tax, Spending and Debt Limitations

Colorado voters passed an amendment to the State Constitution, Article X,Section 20, which has several limitations including revenue raising,spending abilities, and other specific requirements of state and localgovernments. The amendment is complex and subject to judicialinterpretation. The entity believes it is in compliance with therequirements of the amendment. However, the entity has made certaininterpretations of the amendment's language in order to determine itscompliance.

On November 7, 1995, the voters of Phillips County approved a ballotinitiative allowing the County to retain funds over the limitations imposedby the amendment in 1995 and all subsequent years. It is the opinion ofthe County that the revenue and spending limitation imposed by theamendment no longer applies to the County.

20

Note 11 Reserved Fund Balances

With the passage of Amendment One to the Colorado State Constitution,the County has reserved at least 3 percent of its spending limitation foremergencies. For 2014, $161,126 has been reflected as the emergencyreserve.

Note 12 Landfill

State and federal laws and regulations require the County to place a finalcover on its landfill when it stops accepting waste and to perform certainmaintenance and monitoring functions at the site for thirty years afterclosure. Although closure and postclosure care costs will be paid onlynear or after the date that the landfill stops accepting waste, the Countyreports a portion of these closure and postclosure care costs as anoperating expense in each periodbased on landfill capacity used as of eachbalance sheet date. At December 31, 2014, the County has closed 25.3%of the estimated capacity of the landfill. The County expects the closureand post-closure liability to be $319,898 to cover the last cell open at thetime of closure. The amount is based on what it would cost to perform allclosure and post-closure care in 2014. Actual costs may be higher due toinflation, changes in technology, or changes in regulations.

The County expects to close the landfill in the year 2061. The County hascompleted the financial assurance report; however, no contributions havebeen made to a trust to finance closure and post-closure care. As of year-end, the countyhas not restricted any assets for the payment of the closureand post-closure care costs.

Note 13 Lease Purchase

During 2011, the County entered into a lease purchase of motor graders.The lease calls for annual payments beginning April 30, 2012, of $99,045.There is a stated interest rate of 2.85%. The payments are made by theRoad & Bridge Fund.

Due Date Interest Principal

April 30,2015 $ 2,745 $ 96,300

During 2012, the County entered into a lease purchase of $182,000. Thelease calls for a down payment and annual paymentsbeginning February2013 of $32,093. There is a stated interest rate of 2.29%. The paymentsare made from the Road & Bridge Fund.

21

Equipment LeaseEquipment LeaseCompensated Absences

Due Date

February 21, 2015February 21, 2016February 21, 2017

Changes in long-term debt:

BeginningBalance Additions

73,971

Interest Principal

$ 2,107

1,421

723

$ 29,986

30,672

30,736

$ 4,251 $ 91,394

Deletions

(93,632)(29,314)

EndingBalances

$ 96,30091,394

189,863

Current

Portion

$ 96,30029,986

$ 189,932120,708115,892

$ 426,532 73,971 $ (122,946) $ 377,557 $ 126,286

Note 14 Fund Balance

In the fund financial statements the following classifications describe therelative strength of spending constraints.

• Non-spendable balance - The portion of fund balance that cannotbe spent because it is either not in spendable form (such asinventory and prepaid amounts) or is legally or contractuallyrequired to be maintained intact.

• Restrictedfund balance - The portion of fund balance constrainedto being used for a specific purpose by external parties (such asgrantors or bondholders), constitutional provisions, or enablinglegislation.

• Committedfund balance - The portion of fund balance constrainedfor specific purposes according to the limitations imposed by theCounty's highest level of decision-making authority, the CountyCommissioners, or other individuals authorized to assign funds tobe used for a specific purpose. This classification is necessary toindicate that those funds are, at a minimum, intended to be used forthe purpose of that particular fund.

• Assignedfund balance - The portion of fund balance set aside forplanned or intended purposes but are neither restricted norcommitted. The intended use may be expressed by the CountyCommissioners or other individuals authorized to assign funds tobe used for a specific purpose. Assigned fund balances in special

22

revenue funds will also include any remaining fund balance that isnot restricted or committed. This classification is necessary toindicate that those funds are, at a minimum, intended to be used forthe purpose of that particular fund.

• Unassigned fund balance - The residual portion of fund balancethat does not meet any of the above criteria. The County will onlyreport a positive unassigned fund balance in the General Fund.

The County considers that committed amounts would be reduced first,followed by assigned amounts, and then unassigned amounts whenexpenditures are incurred for purposes for which amounts in any of thoseunrestricted fund balance classifications could be used.

Note 15 Schedule of EBT Authorizations

Refer to the following page for EBT authorizations during 2014.

23

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Phillips County, ColoradoBudget and Actual (with Variances)

General

For the year ended December 31,2014

Variance with

Final Budget -

Budgeted Amounts Actual Positive (Negative)

Original Final

REVENUES

Property Taxes $ 1,580,198 $ 1,580,198 $ 1,572,176 $ (8,022)

SO Tax 160,000 160,000 202,452 42,452

Sales and miscellaneous taxes 185,000 185,000 258,318 73,318

Fees and fines 600 600 2,065 1,465

Licenses and permits 1,075 1,075 1,295 220

Intergovernmental 94,043 94,043 93,084 (959)

Charges for services 185,400 185,400 298,641 113,241

Investment earnings 6,000 6,000 5,662 (338)

Rent 43,000 43,000 59,142 16,142

Miscellaneous 41,100 41,100 76,075 34,975

Total revenues 2,296,416 2,296,416 2,568,910 272,494

EXPENDITURES

Current:

General Government 1,230,419 1,261,372 1,217,585 43,787

Public Safety 746,253 746,973 596,736 150,237

Health and sanitation 395,651 406,920 305,280 101,640

Culture and recreation 337,066 339,848 316,965 22,883

Judicial 85,155 85,155 85,155 -

Capital Outlay 66,500 71,768 50,903 20,865

Total Expenditures 2.861,044 2,912,036 2,572,624 339,412

Excess (deficiency) of revenues overexpenditures (564.628) (615,620) (3,714) 611,906

OTHER FINANCING SOURCES (USES)

Transfers out (63,500) (63,500) (53,500) 10,000

Total other financing sources and uses (63,500) (63,500) (53,500) 10,000

Net change in fund balances (628,128) (679,120) (57,214) 621,906

Fund balances - beginning 824,931 824,931 1,116,333 291,402

Fund balances - ending $ 196,803 $ 145,811 $ 1,059,119 $ 913,308

25


Road & BridgeFor the year ended December 31,2014

Variance with

Final Budget -


Original Final

REVENUES

Property Taxes $ 311,481 $ 311,481 5 262,157 $ (49,324)

SO Taxes 28,000 28,000 39,924 11,924

Sales and miscellaneous taxes 286.000 286,000 339,927 53,927

Licenses and permits - -1,927 1,927

Intergovernmental 1,127,319 1,127,319 1,162,188 34,869

Charges for services - -9,985 9,985

Miscellaneous - - 6,544

1,822,652

6,544

Total revenues 1,752,800 1,752,800 69,852

EXPENDITURES

Current:

General government 9,000 9,000 10,957 (1,957)

Highways and roads 1.598,390 1,598,390 1,413,147 185,243

Debt Service:

Principal 120,746 120,746 122,946 (2,200)

Interest and other charges 11,338 11,338 8,191 3,147

Capital Outlay 236,500 236,500 399,430 (162,930)

Total Expenditures 1,975,974 1,975,974 1,954,671 21,303

Excess (deficiency) of revenues overexpenditures (223,174) (223,174) (132,019) 91,155


Other sources - - 142,158

142,158

(142,158)

Total other financing sources and uses - - -

SPECIAL ITEM

Proceeds from sale capital assets - - 3,000

13,139

(3,000)

Net change in fund balances (223,174) (223,174) 236,313

Fund balances - beginning 276,868 276,868 513,701 236,833

Fund balances - ending $ 53,694 $ 53,694 ! 526,840 $ 473,146

26


Human Services

For the year ended December 31, 2014

Variance with

Final Budget -


Original Final

5 117,205

15,101

460,799

REVENUES

Property TaxesSO Taxes

IntergovernmentalMiscellaneous

$ 117.812

13.000

621.613

10,500

762,925

$ 117,812

13,000

621,613

10,500

762,925

$ (607)

2,101

(160,814)(10,500)

Total revenues 593,105 (169,820)

EXPENDITURES

Current:

Health and human services

Total ExpendituresExcess (deficiency) of revenues overexpenditures

796,210

796,210

(33,285)

796,210

796,210

(33,285)

583,734583,734

9,371

212,476

212,476

42,656


Transfers in

Total other financing sources and uses

30,000

30,000

30,000

30,000

20,000

20,000

10,000

10,000

Net change in fund balancesFund balances - beginningFund balances - ending

(3,285)39,367

$ 36,082 $

(3,285)39,36736,082

29,371

53,421$ 82,792

32,656

14,054$ 46,710

27


Capital ExpendituresFor the year ended December 31, 2014

Variance with

Final Budget -


Original Final

REVENUES

Property Taxes $ 73,636 $ 73,636 $ 73,250 $ (386)

SO Taxes 6,500 6,500 9,438 2,938

Intergovernmental 2,305,472 2,305,472 472,722 (1,832,750)

Charges for services 107,000 107,000 151,815 44,815

Miscellaneous 25,000 25,000 35,962 10,962

Total revenues 2,517,608 2,517,608 743,187 (1,774,423)

EXPENDITURES

Current:

General government 1,855,950 1,855,950 482,389 1,373,561

Public Safety - -1,611 (1,611)

Capital Outlay 579,037 579,037 46,291 532,746

Total Expenditures 2,434,987 2,434,987 530,291 1,904,696

Excess (deficiency) of revenues overexpenditures 82,621 82,621 212,896 130,273

Net change in fund balances 82,621 82,621 212,896 130,275

Fund balances - beginning 53,431 53,431 8,986 (44,4451

Fund balances - ending $ 136,052 $ 136,052 $ 221,882 $ 85,830

28

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30


Ambulance ReplacementFor the year ended December 31, 2014

nues over

S (USES)

and uses

Budgeted Amounts Actual

Variance with

Final Budget -Positive (Negative)

Original Final

i184

REVENUES

IntergovernmentalInvestment earnings

$ 65.000

75

8,000

73,075

125,000

125,000

(51,925)

8,000

8,000

(43,925)

61,381

$ 17,456

$

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75

8,000

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125,000

125,000

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8,000

8,000

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17,456

$ (65,000)109

(8,000)

Total revenues

EXPENDITURES

Current:

Capital OutlayTotal Expenditures

Excess (deficiency) of reveexpenditures

OTHER FINANCING SOURCE

Transfers in

Total other financing sources


184 (72,891)

125,000

- 125,000

184

8,000

8,000

8,184

61,418$ 69,602

52,109

-

52,109

37

$ 52,146

31


Conservation Trust


Variance with Final

Budget - Positive

Budgeted Amounts Actual (Negative)

Original Final

$ 11,413 $REVENUES

Intergovernmental $ 11,500 $ 11,500 (87)

Investment earningsMiscellaneous

30 30 32

2,200

13,645

2

2,200

Total revenues 11,530 11,530 2,115

EXPENDITURES

Current:


Total Expenditures

13,435

13,435

13,435

13,435

5,371

5,371

8,064

8,064

Excess (deficiency) of revenues overexpenditures (1,905) (1,905) 8,274 10,179


(1,905)

1,905

$ $

(1,905)

1,905

8,274

27,639

$ 35,913 $

10,179

25,734

35,913

32

REVENUES

Investment earningsTotal revenues

EXPENDITURES

ContingencyTotal Expenditures

Excess (deficiency) of revenues overexpenditures



ContingentFor the year ended December 31,2014

Variance with Final

Budget - Positive

Budgeted Amounts Actual (Negative)

Original Final

$ 687 $$ 700 $ 700 (13)

700 700 687 (13)

166,747 166,747

166,747

(166,047)

166,747

166,747 - 166,747

(166,047) 687 166,734

(166,047) (166,047) 687 166,734

166,107 166,107 166,295 188

$ 60 $ 60 $ 166,982 $ 166,922

33


E911


Variance with

Final Budget -


Original Final

$ 92,251

92,251

REVENUES

Charges for servicesTotal revenues

$ 73,900

73,900$ 73,900

73,900

$ 18,351

18,351

EXPENDITURES

Current:

Public SafetyCapital Outlay

Total ExpendituresExcess (deficiency) of revenues overexpenditures

90,675

37,500

128,175

(54,275)

90,675

37,500

128,175

(54,275)

128,216

44,860

173,076

(80,825)

(37,541)

(7,360)

(44,901)

(26,550)


(54.275)

134,433

$ 80,158 $

(54,275)134,433

80,158

(80,825)160,324

$ 79,499

(26,550)25,891

$ (659)

34


Fair


Variance with

Final Budget -


Original Final

$ 79,494

79,494

REVENUES

Miscellaneous

Total revenues

$ 43,500

43,500

$ 49,493

49,493

$ 30,001

30,001

EXPENDITURES

Current:


Total Expenditures

51,150

51,150

63,000

63,000

71,185

71,185

(8,185)

(8,185)

Excess (deficiency) of revenues overexpenditures (7,650) (13,507) 8,309 21,816

OTHER FINANCING SOURCES

Transfers in

»(USES)

and uses

30.000

30,000

22,350

6,857$ 29,207 $

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30,000

16,493

6,85723,350

(30,000)

Total other financing sources - (30,000)


8,309

10,940$ 19,249

(8,184)4,083

$ (4,101)

35


Jr. Livestock Sale


Variance with

Final Budget -


Original Final

$ 143,679

10

143,689

REVENUES

Charge for servicesInvestment earnings

Total revenues

$

30

30

$

30

30

$ 143,679

(20)

143,659

EXPENDITURES

Current:


Total Expenditures5,182

5,182

5,182

5,182

143,659

143,659

(138,477)(138,477)

Excess (deficiency) of revenues overexpenditures (5,152) (5,152) 30 5,182


(5,152)

5,166$ 14 $

(5,152)

5,16614

30

5,153$ 5,183

5,182

13

$ 5,195

36


Economic DevelopmentFor the year ended December 31,2014

Budgeted AmountsOriginal Final

REVENUES

Miscellaneous $ 36,473 $ 36,473Total revenues 36,473 36,473

EXPENDITURES

Current:

Economic Development 61,973 61,973Public Safety

Total Expenditures 61,973 61,973Excess (deficiency) of revenues overexpenditures (25,500) (25,500)

OTHER FINANCING SOURCES (USES)Transfers in 25,500 25,500

Total other financing sources and uses 25,500 25,500

Net change in fund balancesFund balances - beginning 8,570 8,570Fund balances - ending $ 8,570 $ 8,570

37

Variance with

Actual

Final Budget -

Positive (Negative)

$ 40,558

40,558

$ 4,085

4,085

63,414

262

63,676

(1,441)

(262)

(1,703)

(23,118) 2,382

25,500 .

25,500 -

2,382

3,544

$ 5,926

(2,382)(5,026)

$ (7,408)

LOCAL HIGHWAY FINANCE REPORT

This Information From The Records Of Phillips County, Colorado:

City or County:

YEAR ENDING :

Dec-14

Prepared By: Randy SchaferPhone: 970-854-3778


I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE

ITEM

1. Total receipts available2. Minus amount used for collection expenses3. Minus amount used for nonhighway purposes4. Minus amount used for mass transit5. Remainder used for highway purposes"

" LocalMotor-Fuel

Taxes

II. RECEIPTS FOR ROAD AND STREET PURPOSES

38

Local

Motor-Vehicle

Taxes

C. Receipts fromState Highway-

User Taxes

D. Receipts fromFederal HighwayAdministration

III. DISBURSEMENTS FOR ROADAND STREET PURPOSES

(Next Page)

FORM FHWA-536 (Rev. 1-05)39

Phillips County, ColoradoSchedule of Due From/ Due to the State of Colorado

Human Services Fund

for the year ended December 31, 2014

County Administration- StateCounty Administration- HCPFChild Care

Child Welfare- State

Child Welfare - State Grant

Child Welfare- HCPF

Colorado Works

IV-D Admin

LEAP

AND

APS

OAP

TANF Collections

State Incentives

Federal Incentives

Assistance

CORE- State

CORE- HCPF

Due From (Net)

40

Due From DileTo

$ 5,249 $ _

4,856 -

5,476 -

16,489 -

860 -

62 -

1,208 -

3,533 -

956 -

- 38

1,145 -

250 -

20 -

70 -

43 -

- 82

2,566 -

40 -

$ 42,823 $ 120

$ 42,703

Phillips County, ColoradoSchedule of Findings and Questioned Costs


Section I: Summary of Auditor's Results

Financial Statements

Typeof auditor's report issued: Unqualified

Internal control over financial reporting:

Are any material weaknesses identified? No

Areanysignificant deficiencies identified notconsidered to bematerial weaknesses? Nor

Is anynoncompliance material to financial statements noted? No

Federal Awards

Type ofauditor's report issued on compliance for major programs: The auditor's report on compliance withrequirements applicable tomajor federal award programs expressed anunqualified opinion.

Internal control over major program compliance:

Are any material weaknesses identified? No

Areanysignificant deficiencies identified notconsidered to bematerial weaknesses? None Reported

Areanyauditfindings disclosed thatare required to be reportedin accordance with U.S. Office of Management and BudgetCircularA-133,Audits ofState, LocalGovernments, andNonprofitOrganizations, Section .510(a)?

Identification of major programs:

CFDA Number(s) and Name of Federal Program or Cluster

20.205 Colorado Department of Transportation

81.087 Department of Energy

Enter the dollar threshold used to distinguish between Type Aand Type Bprograms: $300'000Is the auditee qualified as a low-risk auditee? Yes

No

Section II: Financial Statement Findings

There were notany material weaknesses, fraud or illegal acts, or violations of provisions ofcontracts or grantsagreements or abuse thatcould have a material effecton the financial statements.

Section III: Federal Awards Findings

Thereare not any findings that are requiredto be reported.

41

Phillips County, ColoradoSchedule of Expenditures of Federal Awards

for the year ended December 31,2014

FEDERAL GRANTOR/PASS-THROUGH

GRANTOR/PROGRAM TITLE

DEPARTMENT OF HEALTH &

HUMAN SERVICES

TANF - Colo Works

Child Support EnforcementLEAP

CCDF

Title IV-B Child Care

Title IV-E - Foster Care

Adoption IV - ECCDF Discretion

Title XX Block Grant

Title XIX Medicaid

Subtotal Departmentof Health & Human Services

DEPARTMENT OF JUSTICE

Crime Victim Assistance

Subtotal Department of Justice

DEPARTMENT OF AGRICULTURE

TEFAP Commodities

Food Stamp AdministrationSubtotal Department of Agriculture

DEPARTMENT OF HOMELAND SECURITY

Operations GrantSubtotal Departmentof Homeland Security

DEPARTMENT OF ENERGY

Dept. of EnergySubtotal Department of Energy

DEPARTMENT OF TRANSPORTATION

Colorado Dept. of TransportationSubtotal Department of Transportation

TOTAL FEDERAL

FINANCIAL ASSISTANCE

FEDERAL AGENCY OR FEDERAL

CFDA PASS-THROUGH DISBURSEMENTS/

NUMBER NUMBER EXPENDITURES

93.558 Dept. of Human Services $ 94,132

93.563 Dept. of Human Services 50,640









381,987

16.575 Div. Of Criminal Justice

10.569 Food Bank of the Rockies

10.561 Dept. of Human Services

97.042 Dept. of Public Safety

81.087 Dept. of Energy

20.205 Colo. Dept. of Transportation

22,989

22,989

5,100

42,406

47,506

4,000

4,000

341,401 *

341,401

74,336

74,336

872,219

* Major Programs

NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

NOTE 1: BASIS OF PRESENTATION

The accompanying schedule ofexpenditures offederal awards includes the federal grant activity ofPhillips County, Colorado and is presented on the accrual basis ofaccounting. The informationin this schedule is presented in accordance with the requirements ofOMB Circular A-\33, Audits ofStates, LocalGovernments, and Non-Profit Organizations.

42

rfarmer,llca certifiedpublic accounting and consultingfirm

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE

WITH GOVERNMENT AUDITING STANDARDS


Independent Auditor's Report

We have audited, in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government AuditingStandardsissued by the ComptrollerGeneral of the United States, the financial statementsof the governmentalactivities, each major fund and the aggregate remaining fund information of Phillips County, Coloradoas of and for the year ended December 31, 2014, and the related notes to the financial statements, whichcollectively comprise Phillips County, Colorado's basic financial statements, and have issued our reportthereon dated July 24, 2015.

Internal Control over Financial Reporting

In planningand performing our audit of the financial statements, we considered Phillips County,Colorado's internal control over financial reporting (internal control) to determine the audit proceduresthat areappropriate in the circumstances for the purpose of expressing our opinions on the financialstatements, but not for the purpose of expressing an opinion on the effectiveness of Phillips County,Colorado's internal control. Accordingly,we do not express an opinion on the effectiveness of PhillipsCounty, Colorado's internal control.

A deficiency in internal control exists when the designor operation of a control does not allowmanagement or employees in the normal course of performing their assigned functions, to preventordetect and correct misstatementson a timely basis. A material weakness is a deficiency, or a combinationof deficiencies, in internal control such that there is a reasonable possibility that a material misstatementof the entity's financial statements will not be prevented or detected and corrected on a timely basis. Asignificant deficiency is a deficiency, or a combination of deficiencies, in internal control that is lesssevere than a material weakness, yet important enough to merit attention by those charged withgovernance.

Our consideration of internal control over financial reporting was for the limited purpose described in thefirst paragraph of this section and was not designed to identify all deficiencies in internal control overfinancial reporting that might be material weaknesses or significantdeficiencies. Given these limitations,during our audit we did not identify any deficiencies in internal control over financial reporting that weconsider to be material weaknesses. However, material weaknesses may exist that have not beenidentified.

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p o box 1173 203 east oak st. lamar, Colorado 81052 (719) 336-7428 (719) 336-2982

Compliance and Other Matters

As partof obtaining reasonable assurance aboutwhether Phillips County, Colorado's financial statementsare free from material misstatement, we performed tests of its compliance with certain provisionsof laws,regulations, contracts and grantagreements, noncompliance withwhich could havea directand materialeffect on the determination of financial statement amounts. However, providing an opinion on compliancewith those provisions was not an objective of our audit and, accordingly, we do not express such anopinion. The results of our tests disclosed no instances of noncomplianceor other matters that arerequired to be reported under Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testingof internal control and complianceand the results of that testing, and not to provide an opinion on the effectiveness of the entity's internalcontrol or on compliance. This report is an integral part of an audit performed in accordance withGovernment Auditing Standards in consideringthe entity's internal control and compliance. Accordingly,this communication is not suitable for any other purpose.

rfarmer, lie

July 24, 2015

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rfarmer,Uca certifiedpublic accountingand consultingfirm

REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT ANDMATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL

OVER COMPLIANCE EN ACCORDANCE WITH OMB CIRCULAR A-133

IndependentAuditor's Report


Compliance

We have audited the compliance of Phillips County, Colorado with the types of compliance requirementsdescribed in the U.S. Office of Management and Budget Circular A-133 Compliance Supplement thatcould have a direct and material effect on each of its major federal programs for the year ended December31, 2014. Phillips County, Colorado's major federal programs are identified in the summary of auditor'sresults section of the accompanying schedule of findings and questioned costs.

Management's Responsibility

Compliance with the requirements of laws, regulations, contracts and grants applicable to each of itsmajor federal programs is the responsibility of the entity's management.

Auditor's Responsibility

Our responsibility isto express an opinion on Phillips County, Colorado's compliance with the applicablecompliance requirements based on our compliance audit.

We conducted ourcompliance audit inaccordance with auditing standards generally accepted intheUnited States of America; the standards applicable to financial auditscontained in Government AuditingStandards, issued by the Comptroller General of the United States; and U.S. Office of Management andBudget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations. Thosestandards andCircular A-133 require thatwe plan and perform the compliance auditto obtain reasonableassurance about whethernoncompliance with the types of compliance requirements referred to abovethatcould have a direct and material effect on a major federal program occurred. A compliance audit includesexamining, on a test basis, evidence aboutPhillips County, Colorado's compliance with thoserequirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our compliance audit provides a reasonable basis for our opinion. Our compliance auditdoes not provide a legaldetermination on Phillips County, Colorado's compliance with thoserequirements.

Opinion on Major Programs

In ouropinion, Phillips County, Colorado complied, inall material respects, with the compliancerequirements referred to above thatcould have a direct and material effect oneach of its major federalprograms for the year ended December 31, 2014.

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po box 1173 203 east oak st. lamar, Colorado 81052 (719)336-7428 (719)336-2982

Internal Control over Compliance

The management of Phillips County,Colorado is responsible for establishing and maintaining effectiveinternal control over compliance with the requirements of laws, regulations, contracts and grantsapplicable to federal programs. In planningand performing our compliance audit, we considered PhillipsCounty, Colorado's internal control over compliance with requirements that could have a direct andmaterial effect on a major federal program as a basis for designing our compliance auditing proceduresfor the purposeof expressingour opinion on compliance and to test and report on internal control overcompliance in accordance with CircularA-133, but not for the purposeof expressingan opinion on theeffectiveness of internal control over compliance. Accordingly, we do not express an opinion on theeffectiveness of Phillips County, Colorado's internal control over compliance.

A deficiency in internal control overcompliance exists when the design or operation of a control overcompliance does not allowmanagement or employees, in the normal course of performing their assignedfunctions, to prevent or detectand correct noncompliance with a type of compliance requirement of afederal program on a timelybasis. A material weakness in internal control over compliance is adeficiency, or combination of deficiencies in internal control overcompliance, such that there is areasonable possibility that material noncompliance with a type of compliance requirement of a federalprogram will not be prevented or detectedand corrected on a timely basis.

Our consideration of internal control over compliance was for the limited purposedescribed in the firstparagraph of this section and was not designed to identify all deficiencies in internal control overcompliance that might be deficiencies, significant deficiencies or material weaknesses. Wedid notidentify anydeficiencies in internal control overcompliance thatwe consider to be material weaknesses,as defined above. However, Material weaknesses may exist that have not been identified.

Restricted Use

The purpose of this report is solely to describe thescope of ourtesting of internal control over financialreporting and compliance and the result of that testing, and not to provide an opinion onthe effectivenessof the entity's internal control over financial reporting or oncompliance. This report is an integral part ofan audit performed inaccordance with Government Auditing Standards inconsidering theentity'sinternal control over financial reporting and compliance. Accordingly, this report is not suitable for anyother purpose.

riarmerj Uo

July 24, 2015

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phillips county, colorado · 2020. 5. 8. · phillips county, colorado annual financial report...

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